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Make or Buy Decision for a Service Company The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people layout pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The papes are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service quoting a price of $17 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $190,700 Benefits 43,400 Supplies 23,100 Office expenses 28,900 Office depreciation 26,000 Computer depreciation 17,300 Total $329,400 The department expects to lay out 17,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside a. Prepare a differential analysis dated February 22 to determine whether TAG D should try out pages internally (Alternative 1) or purchase layout services from the outside (Alternative 2). If an amount is zero, enter "o". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Lay out Pages Internally (Alt. 1) or Purchase Layout Services (Alt. ?) February 22 Layout Pages Internally Purchase Layout Services Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Selling Price SO $0 50 Costs Purchase price of layout work Salaries Benefits Supplies Office expenses Office depreciation Computer depreciation Income (loss) 10 in111111 b. The benefit from using an outside service is shown to be (depreciation expenses) in the budget are outside on a strictly financial basis than performing the layout work internally. The fixed costs to the decision. Thus, the work should purchased from the Before electing to the live employees, the guild should consider the of the decision